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Contracts Keyed to Calamari
Western Properties v. Southern Utah Aviation, Inc.
Facts
The trial court awarded the Plaintiff, Western Properties (the "Plaintiff"), certain amounts of accrued rent. The Plaintiff appeals this award on the grounds that it is entitled to more rent and monies for the construction of maintenance buildings. The Plaintiff leased certain vacant land at the Cedar City Airport from Cedar City and subleased that land to the Defendants, Southern Utah Aviation, Inc. (the "Defendants"), for a 15-year term beginning March 6, 1985. A covenant in the lease required the Defendants to "construct on the premises maintenance buildings", which would become property of the Plaintiff when the sublease expired. Cedar City approved the sublease, but never approved plans for the maintenance buildings to be built. On June 27, 1986, the Defendants defaulted on the sublease without ever building a maintenance building. The Plaintiff brought suit for unpaid rent and the amount the maintenance buildings would have been worth following the fifteen year sub-lease.
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